kony said:
... and yet, we're having auto bailouts when the Japanese
devalued the yen which helped their autos gain ground in the
US.
And as a consequence the Japanese economy is in tatters. Yes, the
devaluation helps with exports, especially with a country that primarily
exports manufactured goods. Japan is an export economy. Their strategy for
prosperity is producing goods and selling them to foreigners. The Bank of
Japan prints money and then exchanges the yen for *dollars* in the foreign
exchange market, pushing down its price. Japan's economy is much worse than
back in 2003-2004. Their stock market is close to 20-year lows and their
GDP is shrinking. Their interest rate is world's second lowest (after the
USA) and there's no room to cut interest rates. Japan's gov't is the most
indebted in the world; see
http://en.wikipedia.org/wiki/List_of_countries_by_public_debt (I haven't
investigated Zimbabwe as regards to what effect their ruined economy from
hyperinflation has on any of the major 6 nations but I doubt it has any
effect).
Our devaluation doesn't help us in the USA. We aren't an export economy (of
manufactured goods versus raw materials). We are a consumer nation. We're
an import economy. Once we went off the gold standard in 1971 (which
eliminated the government's restraint on printing money) and let our dollar
float and kept borrowing from the Fed and let them keep on printing (to hide
tax increases and cause inflation), our debt ratio started to grow; see
http://zfacts.com/p/318.html. Has there been a time in the past where we
dumped $9.7 trillion all at once ($3 trillion in last 2 years, $5.7 trillion
more pledged) into our money supply? Look at the graph and then realize
that the hockey stick rise (hyperinflation) is coming.